AAR CORP (AIR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIR - US0003611052 - Common Stock
86.18 USD
+3.47 (+4.2%)
86.18 USD
0 (0%)
AIR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. AIR has only an average score on both its financial health and profitability. AIR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AIR had positive earnings in the past year.
In the past year AIR had a positive cash flow from operations.
Each year in the past 5 years AIR has been profitable.
In the past 5 years AIR always reported a positive cash flow from operatings.
1.2 Ratios
AIR's Return On Assets of 0.99% is in line compared to the rest of the industry. AIR outperforms 47.89% of its industry peers.
With a Return On Equity value of 2.31%, AIR perfoms like the industry average, outperforming 49.30% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.79%, AIR is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AIR is in line with the industry average of 8.60%.
The 3 year average ROIC (7.36%) for AIR is below the current ROIC(8.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROIC | 8.79% |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
1.3 Margins
AIR has a Profit Margin (1.01%) which is in line with its industry peers.
AIR's Profit Margin has improved in the last couple of years.
AIR has a Operating Margin (9.31%) which is in line with its industry peers.
In the last couple of years the Operating Margin of AIR has grown nicely.
Looking at the Gross Margin, with a value of 19.04%, AIR is doing worse than 67.61% of the companies in the same industry.
In the last couple of years the Gross Margin of AIR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% |
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
2. Health
2.1 Basic Checks
AIR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AIR has more shares outstanding
The number of shares outstanding for AIR has been increased compared to 5 years ago.
The debt/assets ratio for AIR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.34 indicates that AIR is not in any danger for bankruptcy at the moment.
AIR has a Altman-Z score (3.34) which is comparable to the rest of the industry.
AIR has a Debt/Equity ratio of 0.82. This is a neutral value indicating AIR is somewhat dependend on debt financing.
The Debt to Equity ratio of AIR (0.82) is worse than 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.34 |
ROIC/WACC0.89
WACC9.84%
2.3 Liquidity
A Current Ratio of 2.91 indicates that AIR has no problem at all paying its short term obligations.
AIR has a Current ratio (2.91) which is in line with its industry peers.
A Quick Ratio of 1.31 indicates that AIR should not have too much problems paying its short term obligations.
AIR has a Quick ratio of 1.31. This is comparable to the rest of the industry: AIR outperforms 40.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
AIR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.83%, which is quite impressive.
AIR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.75% yearly.
AIR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.59%.
AIR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.06% yearly.
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
3.2 Future
The Earnings Per Share is expected to grow by 15.89% on average over the next years. This is quite good.
Based on estimates for the next years, AIR will show a small growth in Revenue. The Revenue will grow by 1.07% on average per year.
EPS Next Y15.97%
EPS Next 2Y16.76%
EPS Next 3Y15.89%
EPS Next 5YN/A
Revenue Next Year14.2%
Revenue Next 2Y11.66%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.87, which indicates a rather expensive current valuation of AIR.
Based on the Price/Earnings ratio, AIR is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
AIR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.61.
With a Price/Forward Earnings ratio of 16.21, AIR is valued correctly.
Based on the Price/Forward Earnings ratio, AIR is valued cheaply inside the industry as 94.37% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, AIR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 16.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AIR is valued cheaper than 94.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AIR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AIR's earnings are expected to grow with 15.89% in the coming years.
PEG (NY)1.31
PEG (5Y)1.64
EPS Next 2Y16.76%
EPS Next 3Y15.89%
5. Dividend
5.1 Amount
AIR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
86.18
+3.47 (+4.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.95%
Inst Owner Change7.13%
Ins Owners2.08%
Ins Owner Change-1.92%
Market Cap3.41B
Revenue(TTM)2.86B
Net Income(TTM)28.90M
Analysts82
Price Target90.09 (4.54%)
Short Float %2.92%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.36%
Min EPS beat(2)8.56%
Max EPS beat(2)14.17%
EPS beat(4)4
Avg EPS beat(4)7.56%
Min EPS beat(4)1.68%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)4.59%
EPS beat(12)12
Avg EPS beat(12)4.86%
EPS beat(16)15
Avg EPS beat(16)4.6%
Revenue beat(2)2
Avg Revenue beat(2)6.85%
Min Revenue beat(2)6.33%
Max Revenue beat(2)7.38%
Revenue beat(4)3
Avg Revenue beat(4)3.4%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)7.38%
Revenue beat(8)4
Avg Revenue beat(8)1.16%
Revenue beat(12)8
Avg Revenue beat(12)2.16%
Revenue beat(16)10
Avg Revenue beat(16)1.63%
PT rev (1m)1.44%
PT rev (3m)6.32%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)6.15%
Revenue NY rev (1m)3.29%
Revenue NY rev (3m)7.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 16.21 | ||
| P/S | 1.19 | ||
| P/FCF | N/A | ||
| P/OCF | 347.89 | ||
| P/B | 2.73 | ||
| P/tB | 7.1 | ||
| EV/EBITDA | 13.13 |
EPS(TTM)4.13
EY4.79%
EPS(NY)5.32
Fwd EY6.17%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.25
OCFY0.29%
SpS72.25
BVpS31.58
TBVpS12.14
PEG (NY)1.31
PEG (5Y)1.64
Graham Number54.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROCE | 11.13% | ||
| ROIC | 8.79% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 13.64% | ||
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% | ||
| FCFM | N/A |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
ROICexc(3y)7.68%
ROICexc(5y)7.26%
ROICexgc(3y)10.94%
ROICexgc(5y)9.53%
ROCE(3y)9.32%
ROCE(5y)8.8%
ROICexgc growth 3Y18.86%
ROICexgc growth 5Y36.52%
ROICexc growth 3Y7.16%
ROICexc growth 5Y28.07%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 64.78% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 3.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.34 |
F-Score6
WACC9.84%
ROIC/WACC0.89
Cap/Depr(3y)80.23%
Cap/Depr(5y)64.82%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
EPS Next Y15.97%
EPS Next 2Y16.76%
EPS Next 3Y15.89%
EPS Next 5YN/A
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
Revenue Next Year14.2%
Revenue Next 2Y11.66%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%
EBIT growth 1Y75.48%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year44.66%
EBIT Next 3Y21.14%
EBIT Next 5YN/A
FCF growth 1Y24.63%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y545.46%
OCF growth 3Y-21.7%
OCF growth 5YN/A
AAR CORP / AIR FAQ
What is the ChartMill fundamental rating of AAR CORP (AIR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AIR.
Can you provide the valuation status for AAR CORP?
ChartMill assigns a valuation rating of 5 / 10 to AAR CORP (AIR). This can be considered as Fairly Valued.
Can you provide the profitability details for AAR CORP?
AAR CORP (AIR) has a profitability rating of 6 / 10.
What are the PE and PB ratios of AAR CORP (AIR) stock?
The Price/Earnings (PE) ratio for AAR CORP (AIR) is 20.87 and the Price/Book (PB) ratio is 2.73.
What is the financial health of AAR CORP (AIR) stock?
The financial health rating of AAR CORP (AIR) is 4 / 10.